Food giant RHM has put an end to speculation with the news that it is planning a flotation on the London stock exchange.

RHM said that the global offer would comprise of an institutional only offer of existing and new ordinary shares.

Proceeds gained from the flotation would allow RHM to make a £125m contribution to its pension scheme and repay debts and associated expenses, the group added.

Ian McMahon, chief executive officer of RHM said: “Today’s announcement that we intend to IPO represents a major milestone and is a logical next step in our strategy to transform RHM into the leading UK focused food group.”

Credit Suisse Boston will prepare the float for RHM’s private equity owner Doughty Hanson.